6 Mistakes Home Buyers Make

Mistake #1.
Not Getting Pre-Qualified for a Mortgage

Before looking for your next home take the
time to get pre-qualified by the bank or mortgage broker you choose. This can save you hours of searching for
homes in the wrong price range or worse, purchasing a home and then finding out
you don’t qualify for financing.
Pre-qualifying gives you peace of mind, helps narrow your search
criteria and most importantly, gives your RE/MAX agent a negotiating edge by
being able to alleviate the sellers concern over financing. The latter is
especially important should a competing offer surface.

Mistake #2.
Not Shopping For Mortgage Terms

Rates are negotiable! Banks will sharpen
their pencils to get your business especially if you have a good credit rating
and bring other business to them e.g. RRSP’s, general account, savings etc.
Posted rates should viewed as a starting point. You need to know what the best
rate is and this is usually done by get competitive quotes. Also, ask whether
the bank will cover appraisal fees, and about buy-out fees, penalties, payment
options, portability etc. The time spent
can save you thousands of dollars over the life of the mortgage.

Mistake #3.
Not Getting Professional Inspections

Nobody wants to purchase a home only to
find out later there are defects, latent or otherwise. Ensure you obtain inspections where needed
e.g. home inspection, structural engineer, insect, radon etc. If the inspection identifies deficiencies you
may be able to negotiate the purchase price to cover required repairs or make
your satisfaction of the inspection subject to the homeowner remedying the
problem. Your RE/MAX agent can advise you on inspections you should consider.

Mistake #4.
Not Using A Professional Real Estate Agent.

Your RE/MAX agent can help you make a
purchase with the least amount of problems.
He or she can ensure the price you pay is market value. They can offer expert advice on what to look
for, conditions to include, negotiation strategy etc. After all, they work for
you.

Mistake #5.
Buying First Before Selling

If price is important you should always
sell your present home before buying another.
It has the advantage in letting you know exactly how much money you will
have available for your next purchase.
Selling your home first allows you to place fewer conditions on your
purchase which makes your offer more attractive to a seller. They often will demand more money to take a
“subject to” offer which takes their home off the market. The other advantage is if you find a terrific
house, chances are others will also find it attractive and you stand to lose it
if you can’t make an unconditional offer.